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Collecting on a Judgment in North Carolina

How to collect on a judgment in North Carolina? In law school all we talked about in the trial based classes was getting to a judgment. We assumed that once you got a judgment the debtor would just pay up or would file bankrutpcy. But that’s not reality. Somewhere between the judgment and bankruptcy is the netherworld of post judgment collection land. This is in the NC General Statutes 1-300 et seq.

The basic post judgment collection starts with serving motions for exemptions (statutory & constitutional), if the debtor-defendant does answer with motion to exempt, then object to certain exemptions, as necessary within 10 days. After that there will be a hearing in court on the exemptions. Following that there will be writ of execution issued and sheriff will attempt execution. If the sheriff executes the property will be sold at an execution sale. There will be costs associated with sheriff sale. After the sale if the execution is returned unsatisfied or partially unsatisfied then the post-judgment collection hits high gear. That’s what the below described link to our post-judgment collection process describes. We got orders not to dispose of assets, order to depose debtors of our debtors, order to depose trustees of debtor, order in aid to seize bank accounts, order to sell stock. We were busy all day in court.


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